Pakistan raises $500m in Eurobond sale at sub-7% yield

April 17, 2026 (MLN): Pakistan has re-entered international capital markets after a four-year hiatus, raising $500 million through a 3-year Eurobond under its Global Medium-Term Note (GMTN) programme.

This move signals renewed investor confidence in the country’s economic trajectory.

The bond, priced at a coupon of 6.975% per annum and maturing in April 2029, was arranged by Standard Chartered Bank acting as the sole bookrunner, ensuring smooth execution of the transaction.

Despite a backdrop of global economic uncertainty and geopolitical tensions, the issuance attracted strong investor demand, highlighting improving sentiment toward Pakistan’s macroeconomic outlook and reform progress.

The successful return to global markets not only enhances Pakistan’s external liquidity position but also strengthens its standing among international investors, paving the way for more consistent access to external financing.

Importantly, the deal contributes to building a more reliable sovereign yield curve, a key benchmark that can facilitate future borrowings by both the government and corporates at more competitive rates.

This issuance is a part of a broader strategy to diversify funding sources and maintain a stable, long-term presence in international capital markets, reducing reliance on short-term or bilateral financing avenues.

The comeback is meaningful. Strong demand and sub-7% pricing suggest confidence is returning, but staying in the market will depend on policy continuity, IMF alignment, and disciplined external account management.

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